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new nitro vee problem, sinking

i have a nitro vee .12 that is almost 20 years and it has never been touched once untill i started messing with it 2weeks ago However I'm having a major issue with it. I finally get the motor started but as soon as i put it in the water the motor bogs out immedialy and water starts to leak in from somewher, I assume they are connected but I dont know how and how the drive shaft sytem works as far as why is there an exhaust pressue line valve going into the drive shaft housing? I blew pressured air into the line and it shot air up into the cab of the boat, so i dont see why it would be nessary to pump exhaust into the cab. Also i coverd the outer drive shaft , etc with a ton of marine gease and it still leaks. I do have some experience with nitro trucks/cars but no exp with boats. any help would be great. feel free to pm or respond here.
I hope somebody will see this.
thanks

I couldn't understand clearly from your post, does the boat only leak when the engine is on? Or does it leak when the engine is off too? I have my nitro Vee somewhere in the basement, I will try to dig it up and offer some more help.

So I found it, and I have to be honest, I don't have anything on why that line that goes from the carb to the drive-line is there. I can only think that it is there to perhaps lubricate the drive-line. If so, you could remove it, and try the boat that way. Just be sure to oil the drive-line from time to time.

Worst come to worst if the boat doesn't leak when the engine is on, you could always take parts out of it so you can see the bottom inside of the hull and identify your leak easier. You should be able to identify it even with the parts in the boat though.

Most Gas Rc boat leaks are either a missing water cooling line, a non-water tight drive-line, or a hole in the hull.

Sorry I couldn't be much help but please keep me updated on your findings